The Absolute Value of Mar's MRS at His Current Consumption

The absolute value of Mar's MRS at his current consumption bundle is greater than 3.(That is, MU1/MU2 F1> 3) .Mars has convex preferences and is currently consuming positive amounts of both goods.

A) Taking away some of good 1 and giving Mars 3 units of good 2 for each unit of good 1 taken away will necessarily make him worse off.
B) Taking away some of good 1 and giving Mars 3 units of good 2 for each unit of good 1 taken away will necessarily make him better off.
C) Giving Mars some of good 1 and taking away 3 units of good 2 for each unit of good 1 he is given will necessarily make him worse off.
D) Giving Mars some of good 1 and taking away 3 units of good 2 for each unit of good 1 he is given will necessarily make him better off.
E) More than one of the above is true.

Correct Answer:

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